FCA’s ban on crypto derivatives doing more harm than good, executives say

Crypto leaders say that the British ban on cryptographic derivatives harms retail investors rather than protecting them.

Crypto leaders slam the United Kingdom Financial conduct During his ban on cryptographic derivatives, saying that he hurts more retail investors than helping them. Joshua Barraclough, CEO of One Trading and former JPMorgan executive in a interview With Financial News said that the “terrible” ban “harmful to consumers”, which suggests that people should be able to make their own investment choices, even if they have risks.

Konstantinos Adamos, revolut legal advisor for crypto, shared similar opinions. He noted that if the concerns of the FCA concerning the complexity and volatility of cryptography derivatives are understandable, retail investors should always be allowed to decide for themselves. Carly Nuzbach Lowery, founder of Gateway 21, believes that the ban is obsolete because it seems “blunt” and useless.

The FCA introduced the ban for the first time in 2020, reaffirming it later in an update of March 2024. The difficult position of FCA on the crypto motivated businesses like Crypto Exchange Bybit to suspend their operations in the Kingdom -United. Only 14% of the 368 crypto recording requests received by the FCA since 2020 have been approved so far.

Meanwhile, the FCA failed to remove all illegal cryptography announcements, because almost half of the reported promotions are still online. Like crypto.News reported Earlier, between October 2023 and October 2024, the FCA published more than 1,700 alerts on illegal advertisements, applications and websites. However, less than 55% have been removed.